Summa Health System announces major operational, facility changes that could lead to 100-150 job cuts

(This story was updated at 2:35 p.m.)Summa Health System in Akron announced a series of sweeping operational and facility changes, including converting the emergency department at St. Thomas Hospital in Akron to a primary care office, eliminating inpatient services at its Wadsworth-Rittman hospital and cutting a handful of administrative posts.The changes are the first major shakeups since last year when HealthSpan purchased a 30% stake in the health system's enterprise for $250 million. HealthSpan is a non-religious subsidiary of Catholic Health Partners, the state's largest health system.Summa finished 2013 with a 2% profit margin — a relatively healthy margin in the health care industry. Although he wouldn't provide exact figures, Summa president and CEO Thomas Strauss said the health system's numbers for the first quarter of 2014 were “off our plan.”Summa officials say between 100 and 150 people could lose their jobs as part of the Wadsworth-Rittman service cuts over the next three to five months, though an exact number hasn't been determined. The St. Thomas emergency room closure, which is expected to save Summa $600,000, isn't expected to result in any layoffs, as those employees will take on other jobs throughout the system.Dr. Tom Malone, Summa's chief operating officer, said the displaced workers can apply for other jobs across the system, but he noted there aren't many available positions across the enterprise.The health system also cut the president, chief operating officer and chief financial officer roles at its Wadsworth-Rittman and Barberton hospitals.Summa chalked up the service cuts to the rapid rate at which inpatient volumes are declining all over the country. Summa said the inpatient services at the Wadsworth hospital, for instance, average fewer than 20 patients a day. The facility will continue to offer emergency and outpatient services.“We're right-sizing our care delivery system to match these new levels of demand and to invest in the future,” Strauss said.The St. Thomas emergency department will close June 1. Patients requiring emergency or trauma care will be sent to Summa Akron City Hospital, which sits two miles south of St. Thomas. The emergency department will be converted to a primary care office managed by one of Summa's physician groups. The long-term goal, however, is for the office to become a satellite of AxessPointe Community Health Center, an Akron-based organization that serves patients in medically underserved areas.“Summa Health System remains committed to those served by the St. Thomas ED and this decision is, in fact, a response to the way that many of the St. Thomas patients use the ED as a primary care center,” Summa said in the announcement. “The fact is that primary — and preventive — care is increasing in importance in many neighborhoods across the country. The needs of the North Hill residents for expanded primary care services mirror these nationwide trends.”Summa also restructured its leadership team to create what it called a “more streamlined organization.” All of the health system's clinical operations will report to Malone. The health system's corporate functions will continue to report to Strauss. Dr. Erik Steele, the health system's chief medical officer, will oversee quality and clinical integration.